Federal-Mogul Goetze shines post Supreme Court decision

In today’s trading session, the stock of Federal-Mogul Goetze (India) Ltd, surged nearly 19 per cent to touch a 52-week high of Rs 659.46 apiece, as Supreme Court of India has upheld the valuation of Securities and Exchange Board of India (SEBI).

The company, in its exchange filing, has said, “the order grants partial relief to the acquirer that it will be required to deposit only such amounts in the escrow account, which are required under Regulation 17 of the Securities Exchange Board of India”.

The promoter of Federal-Mogul had valued the company at Rs 400 apiece, based on an independent valuation. However, SEBI had valued the firm at Rs. 608.46 apiece, based on independent valuer, which is why, it had asked Federal-Mogul to revised its open offer price upward.

On December 7, 2019, the Securities Appellate Tribunal had also dismissed the appeal of the promoter and upheld the valuation of Rs. 608.46 issued by the market regulator.

 In April 2018, Tenneco had acquired Federal-Mogul, hence, Tenneco is looking to buy the 25.02 per cent stake held by the public.